The Age Gradient in Food Stamp Program Participation: Does Income Volatility Matter?

Abstract

The Food Stamp Program constitutes a major component of any effort to address the nutritional deficiencies found among vulnerable populations in the United States. Concern has been raised among policy makers and researchers that food stamp participation rates tend to decline with age, especially among the elderly who may be financially vulnerable. In this paper we use data from the Panel Study of Income Dynamics (PSID) from 1980 to 2003 and a correlated random effects estimator to estimate the effects of age and income volatility on the decision to participate in food stamps. Controlling for other factors, we find evidence of a Ushaped pattern in food stamp participation by age, and we find that households with aboveaverage income volatility are more likely to participate than those with lower income volatility at most ranges across the age gradient.